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Thread: City Plaza En Bloc

  1. #21

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    Quote Originally Posted by reporter2 View Post
    City Plaza unit owners looking to sell en bloc

    JUL 27, 2017

    They will meet on Saturday to discuss possible collective sale, with asking price of up to $1 billion

    Lee Xin En


    Collective sales fever is spilling into the commercial sector as many City Plaza unit owners prepare for their first annual general meeting in years on Saturday, to discuss a sale with a possible price tag of as high as $1 billion.

    The 18-storey freehold building near Paya Lebar MRT station was completed in 1972 and is known for its wholesale shops, which mainly sell apparel.

    The building has 531 units, including 66 residential units, according to Mr Derrick Chan, a City Plaza unit owner who called for the meeting.

    Mr Chan told The Straits Times yesterday that he did so as "it is the right time now".

    He said: "There is en bloc fever now and Paya Lebar is developing into a business centre. The building is over 40 years old. If we do not go en bloc now, the cost of maintenance will be extremely high."

    Mr Chan, a businessman who owns six units at City Plaza totalling 5,400 sq ft, said most of his units were tenanted, but he did not think that the "trend of wholesale clothing is in our favour".

    "Retail sales are suffering, and wholesale retail is being taken over by (Chinese online site) Taobao. It is not economical to have a shop space and rental is very low."

    Mr Chan added that unit owners are eyeing a sale price of between $800 million and $1 billion. More than 100 people are expected at the meeting. He hopes a collective sales committee can then be formed.

    More than half of the unit owners he has spoken to have expressed interest in a collective sale, he said.

    One of them, Mr James Tan, said rentals have been falling. He bought his 20 sq m unit in the early 1990s and collected a monthly rental of about $1,200. At the peak, he was getting $1,800 but lately, tenants have been seeking rentals of $1,000 to $1,200.

    "Rental rates today are going back to those of the 1990s," he said, adding that even if he were to sell the unit, he did not know if the buyer could get a rental rate that would cover the instalment.

    Dr Lee Nai Jia, head of research at Edmund Tie and Company, said that interest in collective sales of residential properties has spilt into the commercial sector, citing the successful collective sale of Citimac. The freehold industrial complex near Tai Seng MRT station is reportedly being sold for $430.1 million.

    Dr Lee noted that Katong Shopping Centre also launched a collective sales bid earlier this year, but did not manage to meet its reserve price of $630 million.

    "The Paya Lebar area is likely to become a new growth cluster, with Paya Lebar Quarter catalysing the development of the area. Hence, there will be keen interest for City Plaza," he said.

    However, he noted that the asking price range of $800 million to $1 billion is "on the high side", as developers have other viable options.
    Any updates from the meeting?

  2. #22

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    I hear they are calling an EGM in 3 weeks or so to elect the Sales Committee. Apparently this AGM saw a record turnout and many of those who came are keen or at least interested to find out more, including those who own bigger share values. My friend who attended did say that there are some who want to wait for PL to be more developed before cashing out. I do wonder though if they can agree on the price and apportionment of the proceeds. The commercial units hold higher share values so likely they will get the lion's share. The residential units will want to be able to get comparable replacement units so the price has to commensurate.

  3. #23
    Join Date
    Aug 2009
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    Even for commercial units are of different market value as well. Those ground floor, definitely want a higher premium.

  4. #24

  5. #25

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    Anyone has any updates on this? The DC revision really pulled a brake on this?

  6. #26

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    Quote Originally Posted by PropVestor View Post
    Anyone has any updates on this? The DC revision really pulled a brake on this?
    There is some delay calling for the EOGM but I hear they are working on it and expect it to happen in next 2 months. It has nothing to do with DC but rather trying to organise a Collective Sales Committee. Meanwhile , I don't know if this is true but I hear Grandlink Square owners might also be looking into en bloc. Has anyone heard anything ?

  7. #27

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    Quote Originally Posted by Tulip09 View Post
    There is some delay calling for the EOGM but I hear they are working on it and expect it to happen in next 2 months. It has nothing to do with DC but rather trying to organise a Collective Sales Committee. Meanwhile , I don't know if this is true but I hear Grandlink Square owners might also be looking into en bloc. Has anyone heard anything ?
    Thanks for the update. For $1 billion, it is worth the wait.

    PropVestor

  8. #28

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    Quote Originally Posted by PropVestor View Post
    Thanks for the update. For $1 billion, it is worth the wait.

    PropVestor
    You are very welcome.

  9. #29

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    I would like to see how they tackle the apportionment methods:

    1) On the residential side, sizes are 85sqm and 150sqm units (big units are almost twice as big) and if I guess correctly, the share values should be 3 and 4. Striking a balance among the residential owners are already quite difficult.
    2) On the commercial side, I believe valuation methods need to be used. Find a few valuers and take the average?
    3) Then the biggest challenge would be to apportion between the residential and commercial owners.

    I really would love to see a successful en bloc for City Plaza. I have been through one en bloc as a SC, and it really brings the worst out of some people and makes things really hard. "It" means GREED.

    Thanks Tulip09 for updating and please continue to do so if it is convenient. I heard that CDL still owns quite a few shops (could be the best main road facing ones?). Any idea if that is true? Cheers!

  10. #30

    Default City Plaza stakeholders

    Quote Originally Posted by bestguitarist View Post
    I would like to see how they tackle the apportionment methods:

    1) On the residential side, sizes are 85sqm and 150sqm units (big units are almost twice as big) and if I guess correctly, the share values should be 3 and 4. Striking a balance among the residential owners are already quite difficult.
    2) On the commercial side, I believe valuation methods need to be used. Find a few valuers and take the average?
    3) Then the biggest challenge would be to apportion between the residential and commercial owners

    Thanks Tulip09 for updating and please continue to do so if it is convenient. I heard that CDL still owns quite a few shops (could be the best main road facing ones?). Any idea if that is true? Cheers!
    Yes you are right. There are 3 big stakeholders in CP of which CDL is one ( Guan Realty). Second Chance is the second one and the third is an individual whose name I will not mention. But even together the 3 do not have enough share value to get the deal done. The overwhelming majority would be the individual unit owners. But they would need at least 2 if not 3 of the big guns to support the enbloc.
    I understand the commercial units have much higher share value than the residential both in terms of total percentage as well as individual units. So I wonder too how it will play out. The big stakeholders own commercial units. It is true that Guan Realty & second Chance are holding prime units. Good frontage on ground floor and near escalator on second floor. So for them I think price has to make sense. These prime units are doing quite well in terms of rental.

  11. #31

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    I hear the EOGM has been set for Nov 1st. Any guesses how CP will fare versus Sim Lim Sq.?

  12. #32

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    City Plaza had their EOGM today and have voted in a Collective Sales Committee.

  13. #33

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    Quote Originally Posted by Tulip09 View Post
    City Plaza had their EOGM today and have voted in a Collective Sales Committee.
    Timing is crucial. I do hope their CSC will appoint a good intermediary agent. Too bad Mr Karamjit Singh is no longer with JLL. He is one potent ingredient in successful en-bloc sales.

    2 cents,
    PropVestor

  14. #34

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    Quote Originally Posted by PropVestor View Post
    Timing is crucial. I do hope their CSC will appoint a good intermediary agent. Too bad Mr Karamjit Singh is no longer with JLL. He is one potent ingredient in successful en-bloc sales.

    2 cents,
    PropVestor
    Agreed. Mr Karamjit Singh was Mr En bloc in the last round with Credo achieving success after success. I understand CP has a CSC of 14 members and they will be looking into appointing a Marketing agent and Legal team. It seems like they have good support with almost 70% of those present voting in favour of forming the CSC. Turnout was good with Quorum met at the start of meeting with a high percentage.

  15. #35

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    Quote Originally Posted by Tulip09 View Post
    Agreed. Mr Karamjit Singh was Mr En bloc in the last round with Credo achieving success after success. I understand CP has a CSC of 14 members and they will be looking into appointing a Marketing agent and Legal team. It seems like they have good support with almost 70% of those present voting in favour of forming the CSC. Turnout was good with Quorum met at the start of meeting with a high percentage.
    Again, all the best. Am vested in PLC and its growth. I see great potential in drawing a good bid for this as timing is right. 2021 might see an influx of units due to the current en-bloc and also record bided land prices. Am betting on PPR completion in 2020 with high hopes. For better or worst, fingers crossed for you and me!

    PropVestor

  16. #36

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    Quote Originally Posted by Tulip09 View Post
    Agreed. Mr Karamjit Singh was Mr En bloc in the last round with Credo achieving success after success. I understand CP has a CSC of 14 members and they will be looking into appointing a Marketing agent and Legal team. It seems like they have good support with almost 70% of those present voting in favour of forming the CSC. Turnout was good with Quorum met at the start of meeting with a high percentage.
    Best of luck! 14 CSC members! I believe the stakeholders must have been discussing the whole time and have agreed on some salient terms. Hope it will be a success.

  17. #37

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    https://sg.finance.yahoo.com/news/ci...143924680.html

    Hopefully we should hear news soon . Since there is only one purely Commercial site released under the latest GLS this site should do well if launched in next 6 months.

  18. #38

    Default

    I would like to see how they tackle the apportionment methods:

    1) On the residential side, sizes are 85sqm and 150sqm units (big units are almost twice as big) and if I guess correctly, the share values should be 3 and 4. Striking a balance among the residential owners are already quite difficult.
    2) On the commercial side, I believe valuation methods need to be used. Find a few valuers and take the average?
    3) Then the biggest challenge would be to apportion between the residential and commercial owners.

    I really would love to see a successful en bloc for City Plaza. I have been through one en bloc as a SC, and it really brings the worst out of some people and makes things really hard. "It" means GREED.

    Thanks Tulip09 for updating and please continue to do so if it is convenient. I heard that CDL still owns quite a few shops (could be the best main road facing ones?). Any idea if that is true? Cheers!

  19. #39

    Default

    Quote Originally Posted by Tulip09 View Post
    https://sg.finance.yahoo.com/news/ci...143924680.html

    Hopefully we should hear news soon . Since there is only one purely Commercial site released under the latest GLS this site should do well if launched in next 6 months.
    I think the plot of land is in pretty good demand. I heard that at least one major marketing agencies agree to set the reserved price in the north of $1b, and the CSC is still listening to other proposals. Again the difficult part shall be the apportionment methods.

    The neighbouring Park Place Residence (Residential component of Paya Lebar Quarter) Phase I was doing very well. Let's see how they do in Phase II.
    http://www.parkplaceresidencesg.com/...CAAEgIKQ_D_BwE

  20. #40

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    I understand they will appoint a Marketing Agent soon, likely after Christmas or early in January. It will be interesting to see the proposed apportionment. Coming up with one that is agreeable will be quite challenging given the different interest groups. These days however it seems owners tend to sign faster. The process of getting 80% seems to not take that long.

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